SCG Packaging Plc (SCGP) plans to spend 3 billion baht in the fourth quarter of this year to fuel its 2021 investments through merger and partnership deals and organic growth.
Most of the budget will go towards the acquisition of Deltalab SL, a manufacturer and distributor of medical supplies and labware in Spain.
SCGP, which announced in late June that it would acquire an 85% share in Deltalab SL, expects to conclude the deal this year.
The investment in Deltalab will allow SCGP to apply its expertise in packaging technology, including polymer packaging, to the healthcare and medical business.
Wichan Jitpukdee, chief executive of SCGP, said the company had allocated a total of 20 billion baht for business expansion this year.
"We expect to spend all the budget to meet targets in our strategic plan this year," he said.
From January to September, the company spent 17 billion baht of the investment budget.
Investments included three merger and acquisition deals in fibre-based packaging, food service packaging and rigid plastic packaging segments in Vietnam and Indonesia.
"We boosted investments in Asean as part of our strategic plan," said Mr Wichan.
SCGP expects to see growing demand for packaging products during the last quarter of this year due to a recovery in consumers' confidence and purchasing power.
Manufacturing throughout supply chains is also expected to improve, the company said.
Mr Wichan said the company is conducting feasibility studies on new markets in southern China, northern Vietnam, and India, all of which have good packaging business potential.
SCGP is confident its total revenue will enjoy double-digit growth this year, ensuring it surpasses a target of 100 billion baht, due to lockdown easing and a planned reopening of Thailand.
From January to September, SCGP's revenue rose by 29% year-on-year to 89.07 billion baht, while profit increased by 24% to 15.74 billion baht.
The increases were attributed to factors including growing demand from industries related to everyday products, food, and health products.